On a hot, sunny day, after playing at the neighbourhood maidan, a group of young teenagers troops into a roadside joint to recharge themselves after a tiring day. This means having a light snack and, most importantly, a beverage to cool your body down.
For them, choosing the right drink is also associated with boosting energy, as many of the cola brands are marketed. Subconsciously, they tend towards brands that promise an instant boost of energy, and that remains the core argument for Campa Cola, PepsiCo and Monster India against the Food Safety and Standards Authority of India (FSSAI)’s ban on using the ‘energy drink’ label.
For them, the FSSAI’s latest ban on using the ‘energy drink’ label could threaten their very existence, given the seasonality of soft drink consumption and changing preferences from competing brands.
This development by the FSSAI comes at a time when food safety is increasingly being prioritized across the country, with authorities conducting raids and enforcement measures to prevent unfair and misleading trade practices
According to Soumyadip Chakraborty, founder of Upptick, a branding agency, the word energy remains crucial to their marketing strategy.
“They feel they’re buying something that will give them a boost. But I wouldn’t put an exact percentage on the word alone—brand name, packaging and advertising also help justify the price,” he explains.
The adjective offers users the benefit right away, and doesn’t sound too technical, as ‘caffeinated beverage’ could, especially for new brands.
“The drink hasn’t changed, but it may feel less useful to someone trying it for the first time. Regular buyers may care less because they already know the product,” Soumyadip explains further.
Though the Delhi High Court has granted relief, this sudden regulatory change could have been a big challenge to Reliance Industries’ aim to gain a larger share of the soft drinks industry, which it is trying to do through Campa Cola.
Without the energy drink association, it could have been hard for Campa Cola to explain what it offers, though similar brands have some protection through their names.
Given that Campa Cola has been built around aggressive branding and distribution, this development could have thrown a spanner in Mukesh Ambani’s ambitions to rule the FMCG market, but that has been addressed for now.
